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The effect of tax preparers on corporate tax aggressiveness: Evidence form the UK context

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  • Soufiene Assidi
  • Khaled Hussainey

Abstract

This paper studies the role of tax preparers in tax aggressiveness. Based on a sample of 342 UK companies indexed on the Financial Times Stock Exchange (FTSE) 350 from 2006 to 2016, it finds that external tax preparers are more tax aggressive than internal ones. The result is explained by the capability of external preparers to take more aggressive tax positions than internal preparers because of their knowledge in different changes to tax law, and their higher expertise in this field. The findings has implications for managers, policymakers and researchers.

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  • Soufiene Assidi & Khaled Hussainey, 2021. "The effect of tax preparers on corporate tax aggressiveness: Evidence form the UK context," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(2), pages 2279-2288, April.
    • Handle: RePEc:wly:ijfiec:v:26:y:2021:i:2:p:2279-2288
    DOI: 10.1002/ijfe.1906
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    Cited by:

    1. Catherine Catherine & Dedhy Sulistiawan, 0000. "Do narcissistic CEOs promote tax avoidance?: the role of board gender diversity in Indonesia," Proceedings of International Academic Conferences 14216108, International Institute of Social and Economic Sciences.
    2. Badar Alshabibi & Shanmuga Pria & Khaled Hussainey, 2022. "Nationality Diversity in Corporate Boards and Tax Avoidance: Evidence from Oman," Administrative Sciences, MDPI, vol. 12(3), pages 1-12, August.

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